Apple's R&D spending skyrockets 40% in fiscal 2012, still 2% of sales

Apple is notorious for making very focused Research&Development decisions, which keeps this part of its costs times less than the competition like Google or Microsoft.

Yet with one of the largest upgrade cycles it has had so far, its fiscal year 2012 saw R&D investments surge 39% to $3.4 billion, compared to 2011. For that billion more, Apple launched am iPhone design overhaul, and entered the small tablet game, not to mention the Mac line refresh, as well as the numerous other projects that might be in the labs at Cupertino.

The sum still pales in comparison with what Microsoft spent, about $9.8 billion, or Google's for 2011 at $5.2 billion, yet Apple's R&D expenses as percentage of sales stayed the same at just 2%, indicating a pretty good return on investment from those efforts.

Of note are Nokia's R&D layouts, too - the company spent $7.3 billion, or 14.5% of its sales last year, in the push to restructure and change direction at the company. We'd call it money well spent, too, not for the bottomline, but for the technologies that brought us the Lumia 920 and 808 PureView, which are pushing the smartphone camera boundaries big time.

It's a good thing that Apple is spending on R&D again, because i'm thinking about getting that iphone 5S this summer... So don't be so hard on them my Android brothers. Waiting on the Note 3 also. Three cheers for Apple... HIP, HIP, HORRAY.

16.Aeires (unregistered)

Ultimately the iPhone doesn't have to make a single hardware change for the next three years. If they gradually revamp iOS, that's big enough of a change for people to keep buying it (providing they don't isolate users like W8 is).

14.JeffdaBeat (unregistered)

Let's not forget Apple also has the iMac, MacBook Pro, MacBook Air, Apple TV, and iPod lineup as well. We may focus on their phones and tabs, but they do have other things to spend money on too...The new Macs look great this year.

17.Aeires (unregistered)

Haven't forgotten. One is a new product (sorta), and the other has lived with the same screen size for 5 years. The Mac and iPod series have lived with variety for a long time, so that's not as big of a product shake up as the iPhone is.

24.JeffdaBeat (unregistered)

R&D isn't just about coming up with new products. That money also goes into improving or advancing older products. I imagine the new MacBook Pros w/ Retina Display took a lot of R&D money as well as the iPod redesigns. Not to mention iMessage working for all Apple products. It's not just "Product Shake Up" money.

2.JeffdaBeat (unregistered)

The one thing I look forward to is that R&D being a bit more focused with each team working more closely with each other. iOS 7 needs a major overhaul. Almost like the 3.5" screen, I don't think Apple can afford another year of the same OS design. Can't wait to see what Jony comes up with. OSX is something I'd actually prefer to stay the same, but I imagine the look of it will be changed a bit.

What I do wonder is what we will se how of the new iPad and iPhone. I've always said that we are getting to the point where specs don't matter all that much...we know that iOS doesn't take that much power to run. But will they change the look and feel of the iPad or sink money into changing iOS instead.

20.Hemlocke (unregistered)

Compared to the thousands of products they make, Apple's lineup is also nothing. Apple spends appropriately for the size of their lineup. Consider that their entire hardware lineup will fit on one standard 4"x8" table. Yes, it is only 2%, but their sales are unlike anyone else's, as are their profits. For such a small, concentrated lineup, they spend a ton of money.

8.MeoCao (unregistered)

Apple's R&D is vastly different from other companies: It is like scouting job to find oppotunities of easy steals. Remember how they stole Sony's idea for iPhone design? This does not require much investment does it?

How are they even spending that much money in their R&D research when their wasting money in the court rooms? Plus I don't see them anything innovating their making except copying GOOGLES GLASS with their crappy ipatch

Just reading through comments and was wondering, how is nexus going backward? I hope you don't say LTE. It better than pretty much any phone on the market and half their costs. And the tablet is well spec'ed as well and priced on low side. Both are better than their predecessors.

Unlike a few apple products. The official name of the new iPad is, iPad with retina display. Take into consideration that the "new" iPad had retina display and the new iPad is newer than the "new" iPad.
Plus, I would take an iPod touch or iPad with retina display, hell, even the "new" iPad over the mini

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